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Certn

Certn is a comprehensive background check provider that uses smart technology and a dedicated customer service team to deliver results in a matter of minutes. With Certn's online portal, employers, talent acquisition teams, staffing... Read more

EZ Screen Solutions

EZ Screen is a full-service background check solution that offers self-service technology and a dedicated service team to streamline the employment screening process. With experienced experts, EZ Screen Solutions offer a comprehensive... Read more

FoxHire

FoxHire is a technology-enabled Employer of Record (EOR) service designed for contract staffing and recruiting firms. FoxHire's HR services are all leveraged through a cloud-based portal, which allows recruiting and staffing firms... Read more

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Bevov

Bevov is a cloud-based recruiting platform that helps businesses streamline recruiting through automated sourcing, background screening, and applicant tracking. This all-in-one AI recruiting platform has vital features, including candidate... Read more

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Acara

Acara offers tech-enabled recruiting services to employers in a variety of industries. Acara's team is dedicated to helping employers recruit the right talent by providing customized solutions that align with staffing and workforce... Read more

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Change Accelerator

Assessment tools to healthcare, IT, entertainment and other sectors. Service programs assess the health of an organization's culture, people, processes and tools and optimize employee growth through strategic HR recommendations at... Read more

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Harvard PEO

Harvard PEO is technology-enabled service provider that works with employers with over 75 full-time W-2 employees. Harvard PEO provides high-level experienced human resource professionals including an Attorney to take care of all HR... Read more

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Gusto

Gusto is a technology-enabled human resource (HR) service that enables small businesses to manage the workforce, set up compensation policies and process payroll. It lets stakeholders determine suitable health coverage for team members... Read more

Paychex Flex

Paychex Flex is a human capital management solution that's designed using web-based modular technology and a dedicated service center to help meet the HR needs of employers of any size and industry. With a single login, users can... Read more

UltiPro

UltiPro is a technology-based platform that offers human resource (HR) and payroll services for businesses of all sizes. Serving clients across various locations, it helps organizations streamline and manage human capital management... Read more

Zenefits

Zenefits is a tech-enabled HR solution offering advisory and outsourcing services for small to midsized businesses. An on-demand support team is available to provide guidance related to demanding HR tasks, such as processing payroll... Read more

Dayforce HCM

Dayforce HCM, provided by Ceridian, is a global human capital management (HCM) platform that uses modern technology and services to transform the employee lifecycle management experience. Dayforce HCM is a comprehensive cloud platform... Read more

APS

APS has a mission: to make payroll and HR easier. They have been providing payroll and tax compliance services to companies since 1996. In 2004, APS released its cloud-based solution for workforce management. APS delivers a single-system... Read more

Greenhouse

Greenhouse is an applicant tracking system and recruiting solution designed to help businesses find suitable candidates, conduct interviews, and optimize their recruiting process. Greenhouse offers professional recruiting services... Read more

Quickbooks Payroll

QuickBooks Payroll is a technology-enabled HR services platform that offers human resource (HR) and employee management services for small businesses. Serving clients across multiple geographical regions, it helps organizations manage... Read more

Namely

Namely is a technology-enabled platform that provides HR services such as benefits administration, employee onboarding, engagement, talent management, recruiting, and more, to midsize businesses. With its HR compliance package, employers... Read more

Crelate Talent

Crelate Talent is a technology-enabled service that helps recruiting teams source potential candidates, facilitate onboarding processes, and migrate various data. Professionals can track ongoing interactions with applicants, add important... Read more

ADP TotalSource

ADP TotalSource is a full-service HR solution for SMBs. It provides cloud-based HR technology paired with a team of experts to help businesses handle payroll, employment tax, employee benefits and benefits administration, HR policy... Read more

Justworks

Justworks is a technology-enabled HR solution offering comprehensive support services. A dedicated team of HR experts is available to assist with complex HR tasks 24/7. Justworks makes it easier to start, run, and grow a business.... Read more

SmartRecruiters

SmartRecruiters is a web-based hiring platform designed with the end-user in mind. SmartRecruiters has a dedicated Hiring Success Team that offers tech-enabled recruiting services. The solution is suitable for companies with more than... Read more

Buyers guide

Not all businesses have the budget, expertise, or time to manage their human resources (HR) processes in-house. HR services help such businesses outsource either a part of or their entire HR function. They assist businesses in implementing required HR processes but without having to hire and maintain a full-time HR staff or develop in-house capabilities. These services also allow businesses to ensure compliance with labor and employment laws and prepare for federal and state-level audits.

There are several HR service providers on the market, and finding the right one for your business can be time-consuming. In this guide, we’ve included all the information you’ll need to select the right service provider for outsourcing your HR functions.

Here’s what we’ll cover:

What are HR services?

HR services enable businesses to outsource their HR functions to third-party service providers. Outsourced functions include a range of HR processes such as recruitment, payroll management, benefits administration, training, and compliance management. HR services also include consulting services which help to address HR-related issues and optimize policies.

Common offerings of HR services

In this section, we’ve listed the key offerings of HR services to help you make an informed decision.

Payroll management Allows businesses to outsource their employee payroll process. It also helps track time and attendance, calculate net pay and taxes, and remit salaries to employee accounts.
Recruitment Manages job postings, candidate screening, interviews, and offer letters on behalf of businesses.
Training and development Schedules training sessions based on learning and development requirements. Service providers can conduct a variety of in-person and online training sessions including compliance and soft skill development.
Benefits administration Allows businesses to choose from a list of employee benefits such as medical insurance and retirement benefits. Service providers manage the procurement and payment of these plans.
Compliance management Helps ensure compliance with employment regulations such as the Employee Retirement Income Security Act (ERISA) and Fair Labor Standards Act (FLSA).
Auditing Audits HR data to inform about any potential violation of government regulations. It also helps improve HR processes by identifying areas of improvement.

What type of client are you?

There are two major types of HR service clients, each differing in terms of their HR service requirements.

  • Clients that need to outsource the entire HR function: For some businesses, managing all HR processes in-house could lead to ignoring their primary line of business and sometimes higher expenses. Such businesses prefer outsourcing their complete HR function—from hiring to employee offboarding—to an HR service provider who manages it on their behalf. These types of clients tend to have less control over their entire HR function.
  • Clients that need to outsource specific HR processes: These businesses usually have in-house HR staff but lack the expertise or resources to perform specific HR functions such as benefits administration or payroll. Such businesses should opt for providers who specialize in their required function and charge clients only for the services offered instead of charging for a complete suite of services. These types of clients tend to have more control over their entire HR function.

Benefits of HR services

There are many advantages of using HR services. In this section, we’ve listed three key advantages that can help you build a strong case to opt for HR services.

  • Easier compliance with labor laws: Due to constantly changing employment and labor laws, it can be a challenge to remain compliant. HR service providers track all such changes in state and federal laws to ensure compliance while handling the HR functions of your business.
  • Lower HR expenses: Hiring and maintaining in-house HR staff can be expensive. Your business will incur hiring, training, payroll, and related operating expenses. Outsourcing to third-party HR service providers helps reduce these expenses thereby saving money for your business.
  • Access to HR expertise: HR service providers have dedicated experience in the HR field. They provide access to HR specialists with expertise across domains such as recruiting, payroll, and compliance. You can also leverage their expertise to design better HR policies for your business.

Key considerations when selecting HR services

When selecting HR services that cater to your needs, these are three key considerations you shouldn’t miss out on.

  • Data security: HR service providers have access to sensitive HR data. Any data security lapse on the provider’s end can put your employee data at risk. Data security lapses by third-party HR service providers are one of the major threats to employee data security. Carefully read service contracts to understand the data security practices of vendors you’ve shortlisted. Make sure to also ensure that they comply with the data security requirements of your field of business.
  • Total cost of services: HR service providers offer a host of services each available at a different price. When choosing these services, you'll need to be careful about the total costs incurred. Set an expenditure limit and select a provider that offers all the services you need within your budget. You can also speak to our advisors and obtain pricing information for the services you require.
  • Offering selection: While there are several benefits of outsourcing HR services, there are some inherent disadvantages too. For instance, the absence of a HR team could have a demoralizing impact on your employees, as HR personnel are usually considered reliable employee allies. Also, for certain HR functions, it could be more cost-effective to handle processes in-house rather than outsourcing them. It’s important that you weigh both the advantages and disadvantages before selecting offerings.